question archive Sousa caterers, Inc
Sousa caterers, Inc
Subject:FinancePrice:2.84 Bought7
Sousa caterers, Inc. was organized on May 13, 2019 and the articles stipulated the following authorized capital:
a)4,500 shares of preference shares, 110 par value.
b) 42,000 shares of ordinary shares, 30 par value.
Sousa Caterers, Inc. completed the following transactions during its first year of operations:
May 8 Received subscriptions to 14,000 ordinary shares at 30 per share; collected 65% of the subscription price.
June 7 Subscribers to 14,000 ordinary shares paid an additional 20% of the subscription price.
July 6 Subscribers to 14,000 ordinary shares paid an additional 15% of the subscription price. Sousa caterers, Inc issued the 14,000 shares of stock.
Sept.14 Received subscriptions to 4,300 ordinary shares at 32 per share; collected 60% of the subscription price.
Required: Prepare the journal entries.
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| May 8 |
| Subscription Recivable 420,000 |
| Subscribe Ordinary Shares 420,000 |
| Cash 273,000 |
| Subscription Recivable 273,300 |
| June 7 |
| Cash 84,000 |
| Subscription Receivable 84,000 |
| July 6 |
| Cash (420,000*15%) 63,000 |
| Subscription Receivable 63,000 |
| Subscribe Ordinary Shares 420,000 |
| Ordinary Shares 420,000 |
| September 14 |
| Subscription Receivable 137 ,600 |
| Subscribe Ordinary Shares 129,000 |
| Share Premium 8,600 |
| Cash 82,560 |
| Subscription Receivable 82,560 |
Step-by-step explanation
| May 8 |
| Subscription Recivable (14,000*30) 420,000 |
| Subscribe Ordinary Shares 420,000 |
| Cash (420,000*65%) 273,000 |
| Subscription Recivable 273,300 |
| June 7 |
| Cash (420,000*20%) 84,000 |
| Subscription Receivable 84,000 |
| July 6 |
| Cash (420,000*15%) 63,000 |
| Subscription Receivable 63,000 |
| Subscribe Ordinary Shares 420,000 |
| Ordinary Shares (14,000*30) 420,000 |
| September 14 |
| Subscription Receivable (4,300*32) 137 ,600 |
| Subscribe Ordinary Shares (4,300*30) 129,000 |
| Share Premium(4,300*2) 8,600 |
| Cash (137,600*60%) 82,560 |
| Subscription Receivable 82,560 |
